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Feb 28, 2022
WD-40 Q2 2022 Earnings Report
WD-40's net sales increased by 16% and diluted EPS was reported at $1.41.
Key Takeaways
WD-40 Company reported a strong second quarter with a 16% increase in net sales compared to the prior year fiscal quarter. Diluted earnings per share were $1.41, up from $1.24 in the prior year. The company is facing a challenging inflationary environment, which has deteriorated gross margin.
Total net sales for the second quarter were $130.0 million, an increase of 16 percent compared to the prior year fiscal quarter.
Net income for the second quarter was $19.5 million, an increase of 13 percent compared to the prior year fiscal quarter.
Diluted earnings per share were $1.41 in the second quarter, compared to $1.24 per share for the prior year fiscal quarter.
Gross margin was 50.4 percent in the second quarter compared to 55.4 percent in the prior year fiscal quarter.
Revenue by Geographic Location
Forward Guidance
The Company issued the following updated guidance for fiscal year 2022: Net sales growth is projected to be between 7 and 12 percent with net sales expected to be between $522 million and $547 million. Diluted earnings per share is expected to be between $5.14 and $5.27 based on an estimated 13.7 million weighted average shares outstanding.
Positive Outlook
- Net sales growth is projected to be between 7 and 12 percent.
- Net sales expected to be between $522 million and $547 million.
- Gross margin percentage for the full year is expected to be between 50 and 51 percent.
- Advertising and promotion investments are projected to be between 5 and 6 percent of net sales.
- The provision for income tax is expected to be between 20 and 21 percent.
Challenges Ahead
- Net income is projected to be between $70.7 million and $72.5 million.
- Diluted earnings per share is expected to be between $5.14 and $5.27 based on an estimated 13.7 million weighted average shares outstanding.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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